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Five Mile Said to Buy $700 Million of Red Roof Debt, Gain Hotels

A joint venture led by Five Mile Capital Partners LLC gained control of 143 hotels by acquiring $700 million of Red Roof Inns Inc. debt, according to a person familiar with the transaction.

Five Mile and Westmont Hospitality Group bought the loans on the economy-level hotels on Aug. 25, said Andrew Alexander, president of Columbus, Ohio-based Red Roof Inns. He declined to say how much the partnership paid. The debt was purchased for 50 cents on the dollar, said the person familiar with the deal, who declined to be identified because the transaction’s private.